Many investors will be looking for a low cost investment portfolio manager come 2013

A sweeping change will spread across the financial advice world during 2013. Financial advisers (IFAs) who have previously worked on a commission basis, taking their charges from their clients’ investments, will now be required to agree these charges in advance.

The Retail Distribution Review (RDR) came into force on 1 January 2013 and requires all financial advisers to agree up front with their clients what their charge for providing financial advice will be.

Though the regulations required investment portfolio managers to disclose their charges previously, these were potentially missed or misunderstood by clients and investors.

The new regulations should help to make investment portfolio managers much more transparent about their charges. Agreeing in advance the fee you will pay for initial and ongoing investment advice and financial planning support will help people to weigh up much more easily what they deem to be good value for money.

My guess is that there will be a fair few number of investors that will seek lower cost investment portfolio management services when they have the opportunity to consider what they need from an investment manager or IFA.

In fact the entire investment industry is being challenged on its costs with each and every provider coming under scrutiny. It is not only IFAs and investment portfolio managers but also fund managers and platform providers that are being squeezed and questioned over the level of fees they charge and the value they provide in return.

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Blog by Jaskarn Pawar

Jaskarn Pawar is an experienced and award winning Chartered and Certified Financial Planner. He advises people all over the UK on financial planning and wealth management issues to help them reach solutions to fit their personal needs. You can contact Jaskarn on 01604 211234 or by e-mail on jaskarn@investorprofile.co.uk